Thursday, December 29, 2022
 

The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including ServiceNow, Inc. (NOW), Schlumberger Limited (SLB) and MetLife, Inc. (MET). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
 

You can see all of today’s research reports here >>>
 

Shares of ServiceNow have lagged the Zacks Tech sector (-40.7% vs. -39.1%) and the S&P 500 index (-40.7% vs. -22.3%) over the past year. Negative sentiment on the stock and other 'growthy' Tech stocks in the wake of the Fed's extraordinary tightening cycle is the primary reason for its underperformance. The Zacks analyst has also flagged high inflation, unfavorable forex and challenging macro-economic environment, in addition to stiff competition, as some of the other headwinds.
 

However, ServiceNow did benefit from robust growth in subscription revenues as reflected by the strong third-quarter 2022 results. The company is riding on the increasing adoption of its workflows by enterprises undergoing digital transformation. Further, its expanding global presence, solid partner base and strategic buyouts are expected to bolster growth prospects. Strategic alliances with the likes of Microsoft remain tailwinds.
 

(You can read the full research report on ServiceNow here >>>)
 

Schlumberger shares have outperformed the Zacks Oil and Gas - Field Services industry over the past year (+76.4% vs. +56.1%). The Zacks analyst believes that, Schlumberger, being the leading provider of technology for complex oilfields, is well-poised to take up new offshore projects in international markets. The significant increase in oil prices is aiding its overall business. Increased participation in growth of drilling and completion activities across the world brightened the company’s outlook.
 

Also, it boasts of becoming the first company in the energy service industry to add Scope 3 emissions ambition in the net-zero emission target.  However, the company’s balance sheet has massive debt exposure compared with the composite stocks in the industry. Also, the aggressive capital spending budget remains a headwind for the company.
 

(You can read the full research report on Schlumberger here >>>)
 

Shares of MetLife have outperformed the Zacks Insurance - Multi line industry over the past year (+14.8% vs. -1.1%). The Zacks analyst believes that MetLife continues to be driven by growing premiums, an ongoing expense discipline and the benefits of its diverse set of market-leading businesses and capabilities.
 

Several accretive acquisitions led to business diversification and solidified inorganic growth for the company. It resorts to partnerships for strengthening its capabilities and global presence. Business streamlining has aligned MET with high-growth operations. Its strong balance sheet supports shareholder value-boosting efforts.
 

However, reduced variable investment income might raise concerns. The continued incidence of COVID-related mortality claims continues to bother the Group Benefits business. Constant pressure on the EMEA segment’s earnings is worrisome.
 

(You can read the full research report on MetLife here >>>)
 

Other noteworthy reports we are featuring today include Fortinet, Inc. (FTNT), Marriott International, Inc. (MAR) and Shopify Inc. (SHOP).
 

Director of Research
 

Sheraz Mian
 

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>